May 30, 2017

Kass latest on US Stocks, Gold

US Stocks
With equities moving higher, Doug Kass believes the risk vs reward ratio for investors has gotten even worse. The economic and market outcomes are adverse and facing 95 percent decile valuation metrics. He thinks there is a huge downside risk (4 times) to upside gains in the S&P Index. 

The downside risks facing the stock market are a combination of economics, valuations, political and geopolitical risks. Following the crowd has usually been a losing battle. Similarly Kass says he is a minority in the investment world where the majority of the players are simply cheerleaders and momentum chasers. 


Gold
Gold prices are far off from its peak just a few years ago. Kass thinks with all the risks described above, Gold may now make sense on a longer term investing perspective.

via thestreet

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